Appendix 2 Asset Classes, Thresholds, Useful Lives. General Tangible Capital Assets. Capitalization Threshold* Asset Description/Notes.

Appendix 2 – Asset Classes, Thresholds, Useful Lives

General Tangible Capital Assets

Capitalization Threshold* Asset Class Description/Notes Residual Value Pop < 1000 Pop >1000 Amortization Rate# (Straight–Line) Land • Real property in the form of a plot, lot or area

• Includes the purchase price and all closing costs to acquire the land • Costs associated with the permanent improvements of the land, such

as re-grading or filling, are added to the cost of the land

• Examples: Municipal Park, Beach Property, Undeveloped Picnic Site, Festival Grounds, Playgrounds, Look Out Site, Heritage Area/Historic Sites, Cemetery, Community Pasture, Subdivision, Trailer Park, Ecological Reserve, Training Grounds, Landfill Site, Waste Disposal Site/Dump, Module Industrial Site

• Excludes land held for resale

cost _{$0 $0 n/a}

Land

Improvements

• Includes all costs excluding land and buildings incurred in the development of land to facilitate various recreation and economic pursuits

• Examples include but are not limited to landfill site development, driveways, parking lots, bike paths, sidewalks, outside swimming or wading pools, fences, ball diamonds soccer fields, tennis courts, camp sites

• Playground structures – 10 yrs • Soccer field & ball diamonds – 20 yrs • Outdoor Hockey Rink - 10 yrs • Golf Course – 30 yrs

• Basketball Courts - 10 yrs • Running Track - 10 yrs • Bowling Green - 20 yrs • Skateboard Park - 15 yrs

• Campgrounds/Picnic Sites - 20 yrs

• Trails & Boardwalks – walking, biking, ski & skidoo - 20 yrs • Fencing – 10 yrs

• Fountains – 20 yrs

General Tangible Capital Assets

• Outdoor lighting – 20 yrs • Swimming pools – 30 yrs • Tennis courts – 20 yrs • Landscaping – 30 yrs • Retaining walls – 15 yrs • Pavilion/Gazebo - 15 yrs

• Erosion control structures: retaining wall, crib wall, – 25 yrs • Flood control structures: flood walls, dikes – 50 yrs

• Waterfront development - 20 yrs • Tunnel - 50 yrs

• Parking lots:

(i) Gravel – 10 yrs

(ii) Asphalt – 20 yrs

(iii) Concrete – 30 yrs

Buildings – Brick, Mortar & Steel

• All buildings, which function independent of an infrastructure network and are made of a solid construction

• Includes town/city hall, fire hall, office buildings, museum, library, sport & recreation facilities (including picnic shelter, ski hill chalet, survival shack, warm up shack) municipal depot, maintenance garages, storage sheds, trailer buildings, bus shelters, park

washrooms, concessions stands, ticket kiosk, boat house, fish plant, heritage & interpretation centres, Arts & Culture Centres

None _{$5000 $5000 40 years}

Buildings – Wood Frame

• All buildings, which function independent of an infrastructure network, whose structural frame is made out of wood

• Includes town/city hall, fire hall, office buildings, museum, library, sport & recreation facilities (including picnic shelter, ski hill chalet, survival shack, warm up shack) municipal depot, maintenance garages, storage sheds, trailer buildings, park washrooms,

General Tangible Capital Assets

Arts & Culture Centres, Heritage/Interpretation centres Vehicles

• Automobiles, vans, light trucks (1 ton & under), trailers, motorcycles, snowmobiles, ambulance, law enforcement vehicles, animal control vehicles, ice resurfacing machine, bus, mini bus, ATV

• Watercraft: Motor Boat, Zodiak, Tour Boats, Seadoos

<10% of acquisition

cost $2500 $5000 5 years

Machinery & Equipment

• All types of machinery or equipment, other than machinery and equipment used in road construction and maintenance

• Garden maintenance equipment (including mowers, ride on mowers, trimmers, shovels, picks, wood chippers, outside sprinklers)

• Recreational equipment (including scoreboards, bleachers nets, picnic tables, tents, canoes/kayaks

• Welding equipment, generators, audio visual equipment & stage, hand tools, power tools, snow blowers, fire fighting equipment, safety equipment (including traffic & noise barriers, signs, safety lights, sirens), medical equipment, fuel tanks, pumps, key lock system, incinerator, surveying & engineering equipment

<10% of acquisition cost $2500 $5000 5 years Heavy Equipment Vehicles

• All types of machinery and equipment used in the construction and maintenance of roads

• Fire trucks, Garbage trucks, Salt Trucks, Dump Trucks, Snow Plows, Snow Blowers, Sidewalk Blowers, Front End Loaders, Back Hoes, Dozers, Graders, Pavers, Rollers, Boom Trucks, Crushers, Sidewalk/ Road Sweepers, Heavy Equipment attachments (buckets, blades, etc) <10% of acquisition cost $5000 $5000 10 years Computer Hardware & Software & Communication Equipment

• Purchase installation of personal PC computers, peripherals and LAN servers

• Off-the-shelf and related upgrades or licenses for individual personal computers, as well as LAN or communication software

• Does not include the purchase, design and development of major applications. All major applications should be evaluated individually.

General Tangible Capital Assets

• Examples: Personal computers, laptops, printers, scanners, fax machines, photocopiers, software, telephones, cell phones, 2-Way radios, satellite phones, paging systems, blackberry, cameras Furniture &

Fixtures

• Examples: Desks, Chairs, File Cabinets, Kitchen Appliances, Water Dispenser

None _{$2500 $5000 5 years}

Leasehold Improvements

• Costs to renovate, modify or improve accommodations leased by the municipality

None _{$5000 $5000 Over the lease}

term

Assets Under Construction (AUC)

• Also known as work in progress

• Costs incurred to construct an asset, normally a building or leasehold improvements

• The costs are transferred to the asset class when the asset is put into use, which is normally upon completion of the asset.

Infrastructure – Transportation

and road allowance (i.e. Right Of Way) • Excludes land held for resale

Cost $0 $0 n/a

Road Surface • Asphalt - Residential Roads (20 yrs), Collector Roads (15 yrs), Main Thoroughfare Roads (12 yrs) and gravel ( 5 yrs) surfaces

• Guard rails

• Does not include the initial application of granular on gravel roads • Consider segmentation of the network

None $10,000 $10,000 5 to 20 years

Road Grade • Includes formation works, drainage works and culverts under 2 metres in diameter

• Includes the initial application of granular on gravel roads • Future applications of gravel is an operating expense • Consider segmentation of the network

• Include: sidewalks (30 years), curbs

None $10,000 $25,000 30 years

Bridges • Structures of 2 or more meters, which span and give passage over a waterway, deep valley, depression or some other obstacle such as another transportation route

• Includes culverts that are 2 or more meters in diameter • Timber/wood – 30 yrs

• Precast concrete – 40 yrs • Concrete Pre Stressed – 45 yrs • Steel w/o trusts – 45 yrs • Steel with trusts – 50 yrs • Culverts:

(i) Plastic – 25 yrs

None $10,000 $10,000 30 to 50

Infrastructure – Transportation

(ii) Steel/ Corrugated Steel – 15 yrs

(iii) Concrete – 40 years

(iv) Aluminized – 50 years

(v) Galvanized – 15 years

Marine Structures

• Wharf, stage, dock, pier, boat launch, slipway, breakwater, sea fences – 25 years

None $5000 $5000 25 years

Lighting / Traffic Lights

• Includes traffic lights and street lights for illumination • Traffic Lights – 15 years

None $2500 $5000 10 – 15 years

Assets Under Construction (AUC)

• Also known as work in progress

• Costs incurred to construct transportation infrastructure assets • The costs are transferred to the asset class when the asset is put into

use, which is normally upon completion of the asset.

Infrastructure – Water & Waste Systems

waste water sites Cost $0 $0 n/a

Land

Improvements

• Land improvements as defined in the General Capital asset class that are associated with water and waste water sites

• Includes lagoons, reservoirs and engineered wetlands

None $5000 $5000 50 years

Buildings – Brick, Mortar & Steel

• Buildings as defined in the General Capital asset class that are associated with water and waste water treatment and pumping sites • pumping station, water supply building/ water towers,

purification/chlorination plant & equipment, sewer lift station,

None $5000 $5000 40 years

Buildings – Wood Frame

• Buildings as defined in the General Capital asset class that are associated with water and waste water treatment and pumping sites • pumping station, water supply building/ water towers,

purification/chlorination plant & equipment, sewer lift station,

None $5000 $5000 25 years

Water and Waste Water Networks

• Underground networks such as water distribution pipe systems, waste water collection systems and storm drainage collection systems • Useful life of the underground system could vary depending on the

durability of the material used (i.e. concrete, metal, polyethylene) • Sanitary Sewer Lines & Storm Sewers:

(i) Metal Corrugated – 15 yrs

(ii) Concrete, not reinforced (CON) – 40 yrs

(iii) Reinforced Concrete Pipe (RCP) – 60 yrs

(iv) Ductile Iron & cast iron(DI) – 30 yrs

(v) Plastic: PVC & HDPE – 60 yrs

(vi) Ditch / Trench - 50 yrs

None $10,000 $25,000 15 to 100

Infrastructure – Water & Waste Systems

(vii) Manholes & Storm Drains – 40 yrs

(viii) Sewage Outfall – 25 yrs

• Water Mains:

(i) Plastic: PVC & HDPE – 25 yrs

(ii) Ductile (DI) and Cast Iron – 30 yrs

(iii) Reinforced Concrete Pipe (RCP)) –60 yrs

• Useful life of the underground system could vary depending on the diameter of the pipe (main line versus an arterial line)

• Consider segmentation of the network

Machinery & Equipment

• All types of machinery or equipment that are associated with water and waste water sites

• Includes but is not limited to tanks, pumps, generators, filtration treatment systems, residue management systems, sewage treatment systems, water meters, fire hydrants, control valves, valve chambers, sewer pumps, booster pumps

• Equipment used in pumping station, water supply building/ water towers, purification/chlorination plant & equipment, sewer lift station, disinfection system • None $5000 $5000 15 years Dams and Water Structures

• Dams and other structures that are used to control or divert surface water such as dams, canals, dikes, ditches (not already capitalized as part of road grade), diversions, cut-offs and wells – 50 year

• Water intake/supply structures, including drilled and dug

None $10,000 $25,000 25 to 50

years

Assets Under Construction (AUC)

• Also known as work in progress

• Costs incurred to construct water and waste water infrastructure assets

• The costs are transferred to the asset class when the asset is put into use, which is normally upon completion of the asset.